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5S A 5 step program to create, stabilize, organize and sustain
improved workplace environment. The 5 steps are: Seri (Sort) –
organization (all necessary items close at hand, unnecessary
items removed from the area); Seiton (Straighten) – orderliness
(Everything in its place); Seiso (Shine) – cleanliness (clean,
identify necessary repairs, effect repairs); Seiketsu
(Standardize)– standardized methods of organization, cleaning,
and daily activities (create standards, safe work practices,
operator check lists, etc.); Shitsuke (Sustain)– discipline
(implement inspections, audits, and action plans to ensure
sustainment).
ABC see Activity Based Costing
Action Plan The specific steps that must be taken to execute group decisions,
including who does what by when.
Activity Based Costing A method that allows an organization to determine the actual cost
associated with each product and service produced by the
organization based on their use of resources.
Actual Delivery Date The actual date the supplier delivers the material.
Adjustment (1) Minor tune-up action requiring hand tools, no parts and less
than one half hour. Adjustments restore parts or assembly
relationships such as tolerance, alignment, tension and tightness.
(2) Write up, write down, of inventory as a result of a cycle count to
adjust to the correct quantity.
Area (or Zone) Maintenance A type of maintenance in which the first-line Maintenance
Supervisor is responsible for all maintenance within a reasonable-
sized geographical area.
Asset Value The book value of property owned and listed on the balance sheet.
Attitude of Error Free Work Our personal commitment to fulfill our agreement with our
customers “the first time, every time.”
Automatic Storage & Retrieval A computer-controlled method for stocking, moving and selecting
System parts in a storeroom with little or no human material handling,
typically used in high volume areas where storage density is
important because of space constraints.
Backlog Purge The evaluation of backlog work orders that are duplicates, now
considered as unnecessary, orders that the work has been
completed, but not completed in the CMMS. The evaluation is
conducted with representatives of Production, Maintenance and
Work Planning. The identified work orders are then completed or
cancelled in the CMMS with comments noting the reason for
removing the work order from the backlog.
Balanced Production All operations or cells producing at the same cycle time. In a
balanced system, the cell cycle time is less than takt time.
Batch-and-Queue Producing more than one piece of an item and then moving those
items forward to the next operation before they are all actually
needed there. Thus, items need to wait in a queue.
Benefit Tracking A defined cost benefit from a work process that is tracked over a
period of time.
Black Belt Six Sigma team leaders responsible for implementing process
improvement projects within the business.
Blanket Purchase Order A document that identifies the product or service to be purchased,
the cost, the terms and conditions, and the estimated quantity for a
specified period of time. Material releases are used to identify the
quantity to be purchased within the specific period of time against
the base purchase order. These releases are usually repetitive in
nature and define requirements on regular intervals.
Bottleneck Any resource whose capacity is equal to, or less than the demand
placed on it, or which controls the maximum rate of production of
resources ahead or behind the resource in the process stream.
Break-In Work Emergency or urgent work that breaks into scheduled work.
Urgent work may have enough lead-time to be put on the Daily
Schedule.
Capacity Constraint Resources Non-bottleneck resources that, based on the sequence in which
they perform their jobs, can act as a constraint.
Category The types of work which make up the work load performed by
Maintenance. Typical: PM, emergency, urgent and planned work.
Certificate of Origin A document which specifies the country of origin of the goods
being shipped.
Spare Parts List A list of recommended items and quantities that should be kept on
hand or readily available to effectively maintain an asset.
COGS See Cost of Goods Sold
Commercial Invoice A standard document indicating the value of a shipment and all
associated charges.
Commonly Used Parts A combination of standard replacement parts and hardware items
that may be used on many components and pieces of equipment.
Confirming Order A purchase order issued to a supplier listing the goods or services
and terms of an order placed orally or otherwise before the usual
purchase document.
Conflict of Interest Any business activity, personal, or company related, that interferes
with a company’s goals or that entails unethical or illegal actions.
Contract Accounting The function of collecting costs incurred on a given job or contract,
usually in a progress payment situation. Certain US government
contracting procedures require contract accounting.
Control A process by which comparisons are made between the plan and
the performance, either during or after execution. Control relies on
effective, complete planning and accurate quantitative
observations. It is the process of comparing these two operations.
Cost The value of money that has been used up to produce something
and hence is not available for use anymore.
Cost Center The smallest segment of an organization for which costs are
collected and formally reported, typically a department. The
criteria in defining cost centers are that the cost be significant and
that the area of responsibility be clearly defined. A cost center is
not necessarily identical to a work center; normally a cost center
encompasses more than one work center, but this may not always
be the case.
Cost of Capital The cost of maintaining a dollar of capital invested for a certain
period, normally one year. This cost is normally expressed as a
percentage and may be based on factors such as the average
expected return on alternative investments and current bank
interest rate for borrowing.
Cost of Goods Sold An accounting classification useful for determining the amount of
direct materials, direct labor, and allocated overhead associated
with the products sold during a given period of time.
Cost of Poor Quality The cost associated with providing poor-quality products or
services. There are four categories of costs: 1) Internal Failure
Costs – Costs associated with defects found before the customer
receives the product or service. 2) External Failure Costs—Costs
associated with defects found after the customer receives the
product or service. 3) Appraisal costs—Costs incurred to
determine the degree of conformance to quality requirements. 4)
Prevention Costs—Costs incurred to keep failure and appraisal
costs to a minimum.
Cost of Quality The measure of what it costs when we do our job right or when we
do it wrong. It measures the cost of error as well as prevention
and detection costs.
Cost, Insurance, and Freight Used along with a destination point, the cost of insurance and
delivery of cargo incurred by the seller to that destination. Beyond
the CIF point, the buyer is responsible for all costs, including
import duties and fees, customs clearance, etc.
Covariance The impact of one variable upon others in the same group.
Critical Spares Key parts and/or components of an asset that need to be in stock
or readily available because of the potential production, service
and/or financial implications of an equipment failure requiring
these materials.
Critical Path Method A mathematically based algorithm for scheduling a set of project
activities. It is an important tool for effective project management.
Current State Map A Business Process Reengineering technique that helps visualize
the current state of a process and identifies sources of waste.
Customer The individual who receives the immediate output of your efforts
(normally a co-worker or boss). The “customer” is the person with
whom requirements are set and agreed upon.
Daily Schedule Jobs that the maintenance supervisors have selected for
technician’s assignment the following day. These jobs normally
come from the Weekly Forecast. Urgent work that breaks into the
normal work for the week may be added as break-in work.
Deferred Maintenance Maintenance that can be postponed to some future date without
further deterioration of equipment.
Delivery Receipt Document signed by the recipient indicating receipt of the material
in good order and without damage. A bill of lading signed by the
recipient often is used as a delivery receipt. Sometimes referred
to as "Proof of Delivery".
Demand Flow The concept of pulling raw materials and products through the
process strictly according to the rate customers demand the
product.
Dependent Events Events that occur only after a previous event has been completed.
Economic Order Quantity A fixed order quantity that minimizes the sum of carrying costs and
administrative purchasing costs.
Acknowledged Delivery Date The date that a supplier promises to deliver material to the
customer's dock.
Engineering Work Order A control document for initiating engineering project work. Often
this is an authorization to use the maintenance work force or a
contractor in support of specific engineering project work.
Enterprise Asset Management Information system that integrates all asset-related applications for
an entire enterprise. Incorporates at least maintenance
management, financial / budgeting, materials management, and
reliability functionality.
Enterprise Resource Planning Information system that integrates all related applications for an
entire enterprise. Industry term for the broad set of activities,
supported by multi-module application software to help manage
the business, including (1) Product Planning; (2) Parts Purchasing;
(3) Maintaining inventories; (4) Interacting with suppliers; (5)
Providing customer service: and (6) Tracking orders.
Equipment Maintenance Plan A plan for maintaining equipment based on asset criticality and
best life cycle costs.
Equipment Repair History The chronological listing of significant repair actions performed on
key units of equipment so that chronic, persistent problems can be
identified and corrected. Historic repair actions also help guide
current repairs. Used as the basis for developing a forecast. (See
Forecasting.)
ERP See Enterprise Resource Planning
Evident Failure A failure mode that will on its own become evident to the opening
crew under normal circumstances.
Failure Analysis The act of determining the physical failure mechanism resulting in
the functional failure of a component or equipment.
Failure Coding Classification of equipment failure events for the purpose of data
analysis and trending. Normally, four types of failure codes
available for use in many CMMS are: Part, Damage, Cause, and
Activity.
Failure Consequences The way(s) in which a failure mode or a multiple failure matters.
Failure Evaluation Mode A procedure in which each potential failure mode in every sub-item
Analysis of an item is analyzed to determine its effect on other sub-items
and on the required function of each item.
Failure Finding Task Scheduled task that determines when a specific hidden failure has
occurred.
Failure Management Policy Statement of purpose that does include on-condition tasks,
scheduled restoration, scheduled discard, failure finding, run to
failure, and redesign.
Floor Stocks, Bench Stock Stocks of inexpensive production parts held in the factory from
which production workers can draw without requisitions.
Flow A main objective of the lean production effort, and one of the
important concepts that passed directly from Henry Ford to
Toyota. Ford recognized that, ideally, production should flow
continuously all the way from raw material to the customer and
envisioned realizing that ideal through a production system that
acted as one long conveyor.
FOB Destination Shipping terms in which the seller bears risk until the goods are
transported to the buyer’s dock, after which risk will pass to the
buyer.
FOB origin Shipping terms in which the seller bears risk until it loads the
goods onto an appropriate carrier, after which the buyer assumes
the risk of loss and must submit a claim against the carrier for
damage or loss in-transit.
Forecasting The long term projection of the best time to carry out major
maintenance actions. Repair history provides a major source of
these projections.
Free Along Side Shipping terms that require the Seller to place the goods on a
loading dock accessible to the carrier, at which the risk of loss
transfers to the buyer.
Function Failure The state in which a physical asset or system is unable to perform
a specific function to a level of performance that is acceptable to
its owner or user.
Functional Work Work that does not lend itself to the area-type supervision, either
because it requires specialized skills or because the nature of the
work requires maximum mobility. Functional work is performed
generally on a plant-wide basis rather than by area. Examples of
functional work are: electrical and instrument repairs, trash
pickup, road repairs, lawn mowing and plant beautification, etc.
Future State Map A blueprint for lean implementation. Your organization_s vision,
which forms the basis of your implementation plan by helping to
design how the process should operate. Typically achieved by
identifying and then eliminating forms of waste in the product or
process.
Gemba A Japanese word, where the real action take place. Gemba is
where the activities to satisfy the customer are carried out.
Goal The end towards which effort is directed. Goals are the steps
directed towards the obtainment of an objective; as such, goals
are more specific than objectives.
Hardware Items Bolts, nuts, washers, cotter pins and other items that are low in
unit costs, carried in ample quantity, are readily available from
suppliers and should be stocked in ample supply by users.
Hidden Function Function that is not detectable by or evident to the operating crew.
Hoshin Kanri A process of setting goals and measurement of progress from top
management. It is designed to ensure that the entire organization
is engaged with the Lean process.
Impact Analysis The tool associated with the principle of “Measure by the Cost of
Quality.” This tool puts into quantifiable and no-quantifiable terms,
the effects that arise from a problem that we are currently living
with. A person or group would use this tool to get management's
attention, prioritize problems or justify the cost of a solution.
Import declaration Declares to US Customs the content and value of the shipment, in
government terminology.
Indirect Charges Labor hours distributed to indirect accounting codes for non-work
activities such as safety meetings, union meetings, lunch, major
delays, etc.
Indirect Cost Cost that is not directly incurred by a particular job or operation.
Insurance Parts Parts used in critical equipment and equipment components. Their
usage is unpredictable since the mean times between failures of
the times where they are used is unpredictable. Their costs range
from a few cents to millions of dollars. Normally, they are carried in
inventory under tightest control. Not having these “insurance parts”
in stock can result in extended downtime and major losses of
production.
Insurance spare components A component of an insurance spare that can cause extensive
downtime when not in inventory.
Insurance spares Materials, when not in stock, can cause downtime of equipment
and loss of production, beyond specified limits, that may lead to
severe disruption or plant shutdown.
ISO9000 Series Standards A set of five individual but related international standards on
quality management and quality assurance developed to help
companies effectively document the quality system elements to be
implemented to maintain an efficient quality system. The
standards, initially published in 1987, are not specific to any
particular industry, product, or service. The standards were
developed by the International Standards Organization (ISO), a
specialized international agency for standardization composed of
the national standards bodies of 91 countries.
Item Master File Computer record containing identifying and descriptive data,
ordering parameters, inventory status and other information.
Just-in-Time JIT is a system for producing and delivering the right items at the
right time, in the right amounts. The key elements of Just-in-Time
are Flow, Pull, Standard Work, and Takt Time. Implementing JIT
requires most features of lean manufacturing.
Key Performance Indicator Historical data that provides current status and trend information
regarding the effectiveness of work processes, e.g.
productivity/operating costs, maintenance labor and material
costs, and performance/availability data.
Kitting The process of pulling material from stock, combining with other
items required to complete a production or maintenance order,
and preparing them for delivery to a secured production or
maintenance area.
KPI see Key Performance Indicator
Last In, First Out Method of inventory valuation for accounting purposes. The
assumption is made that the most recently received (Last In) is the
last to be used or sold (Last Out). There is no necessary
relationship with the actual physical movement of specific items.
Lead Time The total time a customer must wait to receive a product after
placing an order. When a scheduling and production system is
running at or below capacity, lead time and throughput time are
the same. When demand exceeds the capacity of a system, there
is additional waiting time before the start of scheduling and
production, and lead time exceeds throughput time.
Life Cycle Cost Analysis The act of analyzing the total costs associated with the ownership
of an asset. See Life Cycle Cost.
Life Cycle Cost Also known as the the total cost of ownership which includes the
costs associated with the acquisition, installation, useage,
anticipated downtime, planned maintenance, and the disposal (if
any) of the capital asset.
Line Balancing Equalizing cycle times for relatively small units of the
manufacturing process, through proper assignment of workers and
machines; ensures smooth production flow.
Locator System A system for maintaining a record of the storage locations of items
in inventory.
Maintenance The routine, recurring repair and upkeep required to keep facilities
and equipment in a safe effective condition enabling it to be
utilized at original design capacity and efficiency or some other
level specified by management as the maintenance objective.
Maintenance is normally an operating cost, although some
projects, such as overhauls, performed with maintenance
resources may be capitalized. The term maintenance means
capacity assurance, to minimize downtime, increase production,
and maximize profits.
Maintenance Material(s) The parts and supplies used to maintain and repair plant
equipment and facilities.
Maintenance, Repair, and Maintenance materials purchased or in stores that are used for
Operating Supplies repair of or used in operating assets or facilities.
Maintenance Repair Operations Fixing any sort of mechanical or electrical device should it become
out of order or broken (repair) as well as performing the routine
actions which keep the device in working order (maintenance) or
prevent trouble from arising (preventive maintenance).
Maintenance Supplies Commonly used support items that aid in maintaining and
repairing plant equipment and facilities.
Maintenance Work The repair and upkeep of existing equipment, facilities, buildings
or areas in accordance with current design specifications to keep
them in a safe, effective condition while meeting their intended
purposes.
Maintenance Work Order A formal document for controlling planned and scheduled work.
Manage by Prevention Planning job activities in order to keep problems from occurring.
Doing so provides the biggest return for the amount of resources
expended.
Manifest A document that consolidates the details of the contents from
multiple shipments for one or more recipients.
Material Requisition An authorization that identifies the type and quantity of parts
required to be withdrawn from an inventory.
Maximum Order Quantity An order quantity modifier, applied after the lot size has been
calculated, that limits the order quantity to a pre-established
maximum.
MCA see Motor Current Analysis
Mean Time Between Failure An indicator of the overall reliability of an item. The mean time
between failures of a repairable item that repaired and returned to
use.
Mean Time To Failure An indicator of the overall reliability of an item. The mean time
between failures of a non-repairable item.
Minor Repairs Repairs usually performed by one man using hand tools, few parts
and usually completed in less than one-half shift.
Mixed Model Production Capability to produce a variety of models, that in fact differ in labor
and material content, on the same production line; allows for
efficient utilization of resources while providing rapid response to
marketplace demands.
Motor Current Analysis A predictive technology which analyzes variations in the input
current to a motor (using methods much like vibration analysis)
that can be used to identify most motor and cable faults including:
winding problems, rotor problems, connection problems, insulation
failure.
MRO see Maintenance Repair Operations
Muda Waste; anything that interrupts the flow of products and services
through the value stream and out to the customer is designated
Muda _or waste.
Multiple Failure Event occurring if a protected function fails while its protective
device or protective system is in a failed state.
Natural Work Group A group of individuals from within a given department or function
who develop and implement solutions to problems occurring within
the jurisdiction of that department or function.
Non-Operational Consequence Failure mode, with non operational consequences, that is not
hidden, and does not have safety, environmental or operational
consequences.
Non-Routine Maintenance Maintenance performed at irregular intervals with each job unique.
Non-Value Added Activities or actions taken that add no real value to the product or
service making such activities or action a form of waste.
One Piece Flow Producing one unit at a time, as opposed to producing in large lots
or batches.
Open Ended Questions Questions that require a response and solicit information such as
who, what, where when, why, or how.
Open Work Order File A listing of all work orders currently open.
Opportunity Cost The return on capital that could have resulted had the capital been
used for some purpose other than its present use. It usually refers
to the best alternative use of the capital; at other times, however,
to the average return from feasible alternatives.
Overall Equipment OEE is a metric used to monitor the effective use of equipment. It
Effectiveness is obtained from the product of three ratios: 1. Availability ratio –
Time for which equipment was available for operation. 2.
Performance ratio – Rate of production divided by capacity of
machine to produce. 3. Quality ratio – Quantity of ‘right the first
time’ production divided by total production (‘right the first time’ +
setoff + scrap).
Partial Order Any shipment received or shipped that is less than the amount
ordered.
Past Due An order that has not been completed or delivered on time.
PDCA (Plan, Do, Check, Act) PLAN Senior management should use the visioning process in the
context of its Business Plan. HP translates the Business Plans to
action plans, meaningful to all levels of the organization. DO
Answer the whats, hows, and whos for the total number of tiers for
your organization; remember, the fewer the number of tiers, the
better. Also, this is the time to bring management together and
provide them with a basic understanding of HP mechanics.
CHECK On a periodic basis, review the measurements and note
what you’ve learned that can help in the future. ACT Make the
necessary adjustments to plans and priorities in order to ensure
the success of the strategy breakthroughs.
Potential to Failure interval Interval between the point at which a potential failure becomes
detectable and the point at which it degrades into a functional
failure. (Also known as ‘failure development period’ or ‘lead time
to failure.’)
PPE see Personal Protective Equipment
Prevention Analysis The tool associated with the principle of “Manage by Prevention.”
By using this tool, problems can be brought out and dealt with
before an activity is performed. Planning before the fact is always
less expensive than reacting and patching after the fact.
Process The flow of material in time and space. The accumulation of sub-
processes or operations that transform material from raw material
to finished product.
Process Decision Program A technique designed to help prepare contingency plans. The
Chart emphasis of the PDPC is to identify the consequential impact of
failure on activity plans, and create appropriate contingency plans
to limit risks. Process diagrams and planning tree diagrams are
extended by a couple of levels when the PDPC is applied to the
bottom level tasks on those diagrams.
Program Evaluation and Review A network planning technique for the analysis of a project’s
technique completion time. It uses an algorithm that permits identification of
the critical path, the string of sequential activities that determines
the project’s completion time. PERT time estimates are
probabilistic, based on pessimistic, most likely, and optimistic time
estimates for each activity.
Pull System One of the 3 elements of JIT. In the pull systems, the downstream
process takes the product they need and pulls it from the
producer. This customers pull is a signal to the producer that the
product is sold. The pull system links accurate information with the
process to minimize waiting and overproduction.
Push System In contrast to the pull system, product is pushed into a process,
regardless of whether it is needed. The pushed product goes into
inventory, and lacking a pull signal from the customer indicating
that it has been bought, more of the same product could be
overproduced and put in inventory.
Queue Time The time a product spends in a line awaiting the next design, order
processing, or fabrication step.
Quick Changeover The ability to change tooling and fixtures rapidly (usually minutes),
so multiple products can be run on the same machine. See also
SMED
Random Location Storage A storage technique in which parts are placed in any space that is
empty when they arrive at the storeroom. Although this random
method requires the use of a locator file to identify part locations, it
often requires less storage space than a fixed location storage
method.
Ranking Index for Maintenance A method for prioritizing maintenance work that takes both
Expenditures equipment criticality and work importance into account to arrive at
an overall job priority.
Ranking Index Maintenance A method for prioritizing maintenance work that takes both
Expenditures equipment criticality and work importance into account to arrive at
an overall job priority.
Raw Materials Purchased items or extracted materials that are converted via the
manufacturing process into components and products.
Reliability The probability that an item can perform its intended function for a
specified interval under stated conditions. (MIL-STD-721C)
Repair History The chronological listing of significant repairs made on key units of
equipment and the analysis of these repairs to help identify
chronic, repetitive problems, failure trends and the life-span of
critical components.
Replacement Asset Value Total value of all installed assets at a facility or plant.
Replacement Materials Standard Materials that can be used on more than one component or piece
of equipment.
Replacement The process of removing badly worn parts (chains, belts, bearings,
seals, gaskets, etc. that are no longer capable of being adjusted.
Scheduled replacement is performed to avoid costly repairs.
Request for Proposal An invitation for suppliers, often through a bidding process, to
submit a proposal on a specific commodity or service. A bidding
process is one of the best methods for leveraging a company's
negotiating ability and purchasing power with suppliers. The
Request process brings structure to the procurement decision and
allows the risks and benefits to be identified clearly upfront. The
Request purchase process is lengthier than others, so it is used
only where its many advantages outweigh any disadvantages and
delays caused. The added benefit of input from a broad spectrum
of functional experts ensures that the solution chosen will suit the
company's requirements.
Requested Maintenance A request for maintenance service that did not emanate from the
PM system, but did provide sufficient lead-time to allow proper,
proactive, planning and scheduling.
Requirements Analysis The tool associated with the principle “Meeting the Requirements.”
A basic tool used to analyze supplier/customer relationships to
make sure clear requirements have been communicated.
Return Material Authorization A document, often with a serial or control number, provided by a
vendor that authorizes return of the vendor's material from the
customer location back to the vendor's location due to damage,
over shipment, incorrect material, etc.
Right Size Matching tooling and equipment to the job and space
requirements of lean production.
Root Cause Analysis Root cause analysis (RCA) is a process which systematically uses
any one or combination of a class of problem solving methods
aimed at identifying the root causes of problems or events. The
stewardship of this process is usually a function of Reliability
Engineering.
Routine Maintenance Services performed consistently in the same manner, including
such things as grass-cutting, freeze-protection, janitorial services,
etc.
Safety Consequences A failure mode or multiple failure that could potentially result in
injuring or killing a human being.
Scheduled Shutdown The scheduled removal of a facility from service to open, clean,
inspect, repair, add, alter, close and test operating components;
then return of the facility to service with a predetermined interval of
time.
Secondary Function Functions which a physical asset or system has to fulfill apart from
its primary functions, such as those needed to fulfill regulatory
requirements and those which concern issues such as protection,
control, containment, comfort, appearance, structural integrity, and
energy efficiency.
Seven Wastes Taiichi Ohno_s original catalog of the wastes commonly found in
physical production.
(1) overproduction ahead of demand
(2) waiting for the next processing stop, unnecessary
(3) transportation of materials or information
(4) processing of parts due to poor tool or product design or
misunderstood customer requirements
(5) inventories more than the absolute minimum
(6) unnecessary motion by employees during the course of their
work
(7) defects
Shelf Life The amount of time an item may be held in inventory before it
becomes questionable as a usable item.
Shelf Life Control/Rotation A technique of physical first-in, first-out (FIFO) usage aimed at
minimizing stock obsolescence.
Single-Source Supplier A company that is selected to have 100% of the business for a
part, even though alternate suppliers may be available.
Solution An activity that eliminates (or reduces the impact of) a root cause.
Specialized Spare Parts Parts that are used in and are unique to specific equipment
components and equipment.
Standard Operating Procedure A written procedure used to ensure reasonable uniformity each
time a significant task is performed.
Standard Replacement Parts Parts that can be used on more than one component or piece of
equipment. These parts may be carried in stock by suppliers for a
number of users. Delivery lead times are predictable so stock outs
can be managed.
Standard Work A precise description of each work activity specifying cycle time,
takt time, the work sequence of specific tasks, and the minimum
inventory of parts on hand needed to conduct the activity.
Standing Work Order A type of work order that is used to capture labor used on routine,
repetitive actions where capture of history is not important.
Examples include shop cleanup, toolbox meetings, etc.
Stock out A situation where material is showing available in the system, but
is not physically available when it is needed.
Stock Out Costs The costs associated with a stock out. Those costs may include
lost sales, backorder costs, expediting, and additional
manufacturing and purchasing costs.
Sub-Optimization A condition where gains made in one activity are offset by losses
in another activity or activities, created by the same actions
creating gains in the first activity.
Takt Time The available production time divided by the rate of customer
demand. For example, if customers demand 240 widgets per day
and the factory operates 480 minutes per day, takt time is two
minutes; if customers want two new products designed per month,
takt time is two weeks. Takt time sets the pace of production to
match the rate of customer demand and becomes the heartbeat of
any lean system.
Tank Inventory Goods stored in tanks. These goods may be raw materials,
intermediates, or finished goods. The description of inventory as
tank inventory indicates the necessity of calculating the quantity on
hand from the levels within the tanks.
Target Inventory Level In a min-max inventory system, the equivalent of the maximum.
The target inventory is equal to the order point plus a variable
order quantity. It is often called an order-up-to inventory level and
is used in a periodic review system.
Teardown time The time needed to remove a setup from a machine or facility.
Teardown is an element of manufacturing lead-time, but it is often
allowed for in a setup or runtime rather than separately.
Time and Material Contracts Provides payment for labor and overhead at a given rate per hour,
plus the sales price of parts, supplies, and materials.
Time Distribution Card The authorized document for reporting the use of labor against
specific jobs.
Tolerance Limits The upper and lower extreme values permitted by the tolerance.
In work measurement, the limits between which a specified
operation times value or other work unit will be expected to vary.
Tool Calibration Frequency The recommended length of time between tool calibrations. It is
normally expressed in days.
Total Cost Sum of all costs, regardless of which department or firm incurs
them.
Two Bin System A type of fixed order system in which inventory is carried in two
bins. A replenishment quantity is ordered when the first bin is
empty. During the replenishment lead-time, material is used from
the second bin. When the material is received, the second bin is
refilled and the excess put into the working bin. At this time stock
is drawn from the first bin until it is again exhausted. This term is
also used loosely to describe any fixed order system even when
physical bins do not exist.
UE see Ultrasound
Universal Product Code A barcode symbology (i.e., a specific type of barcode), that is
widely used in the United States and Canada for tracking trade
items in stores.
Unscheduled Repairs Unscheduled non-emergency work that could result in becoming
an emergency/breakdown if not addressed. Work must be
completed in the current schedule week with little danger of
equipment failure in the interim. A decision between production
supervision and maintenance as to what work will be interrupted in
the current week's schedule to allow this work to take place.
Schedule compliance will decrease as a result.
UPC see Universal Product Code
Value Stream The specific activities required to design, order and provide a
specific product, from concept to launch, order to delivery, and raw
materials into the hands of the customer.
Value Stream Mapping A visual representation of how product or materials flow from
supplier through manufacturing to the customer. It creates a visual
map and allows the analysis of how the process really works
(which is updated through the use of a future-state value stream).
Value-Added Analysis An activity where a process improvement team strips the process
down to it essential elements. The team isolates the activities that
in the eyes of the customer actually add value to the product or
service. The remaining non-value adding activities ("waste") are
targeted for extinction.
Visual Control Monitoring systems in which deviations from desired levels are
instantly and visibly obvious. Used in a workplace organization
where everything has a place and is in its place.
Warehouse Management A key part of the supply chain and primarily aims to control the
System movement and storage of materials within a warehouse and
process the associated transactions, including shipping, receiving,
put away and picking. The systems also direct and optimize stock
put away based on real-time information about the status of bin
utilization.
Waste Anything that uses resources, but does not add real value to the
product or service, which the customer will not pay for.
Weekly Forecast List of planned work selected from the backlog, forecasted to be
scheduled during the following week.
Work Force The personnel who carry out the work of operating and
maintaining a facility.
Work Order An order to the machine shop for tool manufacture or to the
maintenance department for equipment maintenance or repair.
Authorization to start work on maintenance.
Work Type The types of work that make up the workload performed by
Maintenance. Typical: PM, emergency, urgent and planned work.
World Class The philosophy of being the best, the fastest, and the lowest cost
producer of a product or service. It implies the constant
improvement of offerings to remain an industry leader and provide
the best choice for customers.
World Class Quality A term used to indicate a standard of excellence: The best of the
best.
Our mission is to enable people and organizations to achieve their full potential.
For more than 30 years, Life Cycle Engineering has provided engineering solutions that deliver lasting results for private industry, public entities,
government organizations and the military. Founded in 1976, LCE is headquartered in Charleston, South Carolina, with offices across North America.
As a professional services organization our mission is focused on our clients’ people and organizations. It is our company’s cornerstone belief that we
will not lead the industry in assisting our clients unless we excel at helping our own people and teams reach their full potential.
As a privately held firm, our business vision is shaped by this mission and influences both our short and long-term planning and decision-making. In
every aspect of our business our actions always drive people and organizations to achieve their long-term performance capability (not solely their
short-term profit or cost-cutting targets.)
Since 1976, LCE has grown to include the following solutions & services:
Reliability Consulting & Services Net-Centric Solutions Engineering & Technical Services
Reliability and maintenance solutions for Net-Centric solutions that combine Shipboard engineering and technical
industrial and government markets that Service-Oriented Architecture (SOA) support services for U.S. and foreign
help public and private enterprises gain engineering, network engineering, navies, providing expertise in electrical
improved financial performance through information assurance, test and evaluation and mechanical engineering, systems
greater capacity, lower total cost, improved services, documentation support and engineering and software development.
quality and an engaged workforce. configuration management.
Acquisition, logistics planning and life A full spectrum of program management The Life Cycle Institute is a life-long
cycle support services for military ships capabilities, from financial management learning resource for people engaged in
and shipboard support systems, shipboard and project plan development to planning optimizing asset reliability and performance.
combat systems and aviation systems. and estimating for industrial projects.
All LCE groups embrace our people-focused model of building strengths and employee engagement so that we can deliver successful and
sustainable solutions for our clients. Visit www.LCE.com to learn more.
To learn more about Life Cycle Engineering, contact: 843.744.7110 | info@LCE.com | www.LCE.com